"Over the years, I've worked as a consultant on numerous federal grant projects from the US Department of Agriculture and elsewhere that focused on local economic development and were granted to nonprofits serving their communities. But since the 2024 elections, the focus of my work-and that of the small New Mexico-based consulting firm, Prospera Partners, that I lead-has shifted to help nonprofits develop strategies to sustain themselves despite federal cuts in funding and to programs that once supported their work."
"Over the course of six months of sessions, cohort participants shared with us that they were struggling with the following issues: Losing valuable AmeriCorps workers Filling budget gaps resulting from the loss of federal grants Cutting staff and programs due to the loss of funding from federal agencies Finding that private donors were cutting back on giving because they are concerned about their investment portfolios or are overwhelmed by the amount of need"
I consulted on numerous federal grant projects that focused on local economic development and supported nonprofits. Since the 2024 elections, my consulting firm shifted to helping nonprofits develop strategies to sustain themselves despite federal cuts. A New Mexico community of practice launched in early 2025 documented stories showing that withdrawal of federal funds is harming the sector. Cohort participants reported losing AmeriCorps workers, filling budget gaps from lost grants, cutting staff and programs, donors cutting back, fear of mass unemployment, and rising competition for foundation funding. National survey data mirror these findings, with 61 percent of nonprofits reporting moderate to significant operational risk. Federal grants continue to fund critical community services and economic development.
Read at Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
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